Refer to Case Study 2. The manager has been terminated and replaced. All problems have been resolved. Unfortunately, 6 months later you conduct another audit of the inventory and find new problems:

1) There is no control over consigned inventory, which represents items you don't own but store on your premises for another firm on a commission basis. 2) The new manager is responsible for applicable accounting records. 3) The inventory is not insured. Describe the ethical and financial problems that exist. What are your recommendations?